New third party display (CPM) ads on Adsense

Through official Adsense updates, the publishers were today introduced to a new opportunity of generating ad revenue and maximizing ad space utilization. Google is teaming up with internet advertising companies to show display ads through its own network. These ads will compete with Adwords advertisers over the same bidding methodology and content targeting algorithm.

What does the Publisher gain form this?

Well since there are more ads there will be more competition and ultimately the bid price will go up to keep the advertiser in display all the time. That directly converts into higher CPC rates. But we are more concerned about the CPM rates. Since these are display ads, those who have high traffic volume but lesser CTR could benefit form this. CPM or cost per 1000 impressions is the amount you get when your page loads 1000 times with the add appearing on it. Even though there are no clicks you still get the revenue. Big brands who are particularly concerned about a brand image use these ads. But it is not limited to brand promotion only. Image ads are known to deliver higher CTR (click through rates)

When will this be effective?

Google says this won’t be effective immediately. It will be implemented slowly over a period of time. As more third party publishers get verified and added to the ad stream revenue differences will start to show in our accounts.
Currently publishers in Europe and North America will be able to enjoy the benefits while the rest will have to wait for this opportunity.